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Vermont Yards—and One Notable Florida Firm—Loom Large in Early 2020 Deal Action

LBM openings (green pins), closures (red), and deals (blue) so far in 2020. Source: Webb Analytics

Last year, we couldn't find a single acquisition, opening, or closure in Vermont. But so far this year, seven locations in the Green Mountain State have changed hands, giving Vermont the unlikely title of this year’s LBM dealmaking hotspot.

The action came in two acquisitions. In January, rk Miles bought the Allen Lumber facilities in Barr, Montpelier, Johnsbury, and Waitsfield, VT. Then this month, Bethel Mills announced it had purchased Fogg’s Hardware and Building Supply, which has yards in Fairlee and Norwich, VT, as well as Woodsville, NH. And on the same day, Bethel Mills also acquired Oakes Bros. in Bradford, VT.

Those eight locations account for just under a quarter of the nearly three dozen changes that we know about this year. Outside of Vermont, arguably the most significant acquisition was the PulteGroup’s purchase of Innovative Construction Group of Jacksonville, FL. ICG has developed a reputation as a leader in the off-site fabrication of building materials for the tract builder. Its sales rose 35% in 2019 to reach $72.8 million. Pulte plans to let ICG continue to operate as an independent company.

“We see the potential for our Jacksonville operations to benefit through faster cycle times, precision structural components and savings on lumber and other materials,” PulteGroup president Ryan Marshall said in a press statement. “ICG can also serve as a model to intelligently integrate the use of off-site production with our existing trade partners.”

In other action so far this year:

  • SRS Distribution bought Gannon Roofing, with locations in Des Moines, Cedar Rapids, and Sioux City, IA.

  • Sunpro acquired Stone Lumber in Nampa, ID.

  • GMS entered Connecticut by buying Trowel Trades of Colchester.

  • Foundation Building Materials acquired Insulation Distributors of Dundalk and Capitol Heights, MD.

  • Wilcox Lumber in Naples, NY, sold to a local man, Jeremy Fields.

  • Builders FirstSource increased its bet on the Charlotte market by acquiring Bianchi & Co. of the Queen City.

  • Builders General Supply bought Direct Millwork in Washington, NJ.

  • ABC Supply bulked up its Madison, WI, service area by taking over Midwest Wholesale Materials of Madison. It also opened a new facility in Mesa, AZ.

  • SRS Distribution’s Advanced Building Products division opened stores in Hattiesburg, MS, and Mobile AL, while SRS’ Superior Distribution division started up in Statesville, NC.

  • Former Ganahl Lumber employee Mario Castaneda launched his own company, Blackbird Building Supply, in the Los Angeles County city of La Verne. Blackbird sells windows, moldings, and lumber.

  • Operations with greenfield expansions so far this year included Pukall Lumber, Minocqua, WI; US LBM’s Universal Supply in Newington, CT; and CPS Distributors (a unit of SRS Distribution’s Heritage Landscape Supply Group) in Grand Junction, CO.

  • We know of four openings to come this year: an 84 Lumber components plant in Mansfield, OH; County Truss in Easton, ME; and lumberyard facilities for Zuern Building Products in Slinger, WI, and Hancock Lumber in Saco, ME.

  • Among the closures were West Supply in Upper Darby, PA, and a Builders FirstSource facility in Jamestown, ND. In addition, Fisher Lumber & Hardware of Santa Monica, CA, said last year it planned to shut down around mid-August.

  • Aside from the LBM deals, there also has been one transaction involving a distributor: Carolina Atlantic Roofing Supply bought the Seven D Wholesale facilities in Pelham, AL; Freeport, FL; Biloxi, MS; and Rice, TX.

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